July 15, 2024 • by Yutaka Tokunaga

Recommended Hiring Methods for Indonesians – Sharing My 10-Year Experience in Hiring IT Engineers in Indonesia

Table of Contents

Recruitment in Indonesia is greatly influenced by the choice of the right platform and well-planned hiring strategies. In this article, our company, which has been hiring engineers, designers, and back-office staff in Indonesia for 10 years, will provide a detailed explanation of effective methods and recruitment strategies for hiring Indonesians. If you are planning to do business in Indonesia or are already operating there and facing recruitment challenges, we hope you find this information helpful.

Effective Methods for Securing Job Candidates in Indonesia

Effective Methods for Securing Job Candidates in Indonesia - Timedoor

How to Utilize LinkedIn

LinkedIn is widely used in Indonesia as a professional networking site and is particularly effective for securing talented white-collar candidates. First, enhance your company’s official page by detailing your mission, vision, company culture, work style, and services in the profile. Posting regularly and engaging with followers is also crucial.

LinkedIn Job Posting Feature

On LinkedIn, each personal account can post one job listing for free. The job post is recommended to job seekers based on the industry and location through various sections of LinkedIn and via email. Interested candidates can then apply directly to the job posting.

LinkedIn Recruiter Feature

By utilizing LinkedIn’s dedicated recruiter tools, employers can efficiently search for and screen job seekers. With advanced filters, you can target candidates with specific skills and experience. The InMail feature also allows you to send direct messages to potential candidates to attract their interest.

Networking on LinkedIn

LinkedIn is also an effective platform for networking. By joining industry-related groups and actively participating in discussions, you can increase your company’s visibility and discover potential candidates.

Indeed

Job Posting on Indeed

Although Indeed is a U.S.-based service, it is widely used across various industries in Indonesia. When posting job ads, it is important to clearly specify detailed job descriptions, required skills, and application criteria. Using photos and videos can also help visually showcase the company’s atmosphere and work environment.

Sponsored Job Listings on Indeed

Indeed is primarily free to use, but if you want to reach a larger pool of candidates, you can utilize sponsored job postings to increase ad visibility. This helps ensure that more job seekers see the listing, leading to a higher number of applications.

Indeed’s Applicant Management Tools

By using Indeed’s applicant management tools, employers can efficiently organize and track resumes and cover letters in one place. This streamlines the screening process and improves overall recruitment efficiency.

JobStreet

Job Posting on JobStreet

JobStreet has long been the largest job portal in Southeast Asia, but with the rise of LinkedIn in recent years, its effectiveness has somewhat declined. Since JobStreet is primarily a paid service, it is recommended to use it as a supplementary option when job postings on LinkedIn or Indeed do not attract enough candidates.

JobStreet Company Page

Creating a company page helps strengthen employer branding. Clearly outlining the company’s mission, vision, culture, and work style makes the job posting more attractive to potential candidates.

JobStreet Screening Tools

Utilizing JobStreet’s screening tools allows employers to thoroughly review applicant profiles. The filtering feature helps narrow down candidates based on specific skills and experience, making the selection process more efficient.

University and Vocational School Visits

Collaboration with Universities and Vocational Schools

When hiring Indonesian students as employees, visiting universities and vocational schools for recruitment activities is essential. Hosting company information sessions and workshops allows businesses to directly showcase their appeal and attract students’ interest.

Participation in Career Fairs

By attending career fairs, companies can interact directly with students and promote their brand. These events also provide opportunities to hear students’ questions and interests firsthand, which can be valuable for refining recruitment strategies.

Part-Time and Internship Programs

Offering internship programs helps students gain practical experience. During the internship period, companies can identify talented students and facilitate a smooth hiring process upon their graduation.

Utilizing Social Media

Using Facebook

Leverage your Facebook page to regularly share job openings and company activities. Using photos and videos helps provide visually appealing content that attracts potential candidates.

Using Instagram

Utilize an Instagram account to showcase your company’s appeal through visual content. Posts featuring the office environment and employees at work can be particularly engaging for job seekers.

Using Twitter

Use Twitter to share job postings, company news, and industry trends. Utilizing hashtags helps make your posts more searchable by relevant keywords.

Using LinkedIn

As mentioned earlier, LinkedIn is a crucial platform for recruitment strategies. Ensure that your company’s information is well-documented and regularly updated to enhance its appeal to job seekers. Additionally, it is important for key employees such as the CEO and HR personnel to maintain well-optimized personal LinkedIn profiles.

Internship & Kampus Merdeka

Designing an Internship Program

The number of students in Indonesia seeking internship opportunities is increasing. Companies should create specific projects and assignments that allow students to gain hands-on experience. Implementing a mentorship system, where experienced employees guide and support interns, enhances the learning process.

Kampus Merdeka Program

Kampus Merdeka is a government-certified internship program that allows students to earn university credits while gaining real-world work experience. By utilizing this program, companies can provide students with practical training through specific projects and tasks, assessing them as potential future hires.

Benefits of Internships

Internship programs offer numerous advantages for both companies and students. Companies can identify and nurture young talent early, reducing hiring risks by selecting only the most qualified candidates for full-time roles. Students benefit from hands-on experience, improving their skills and increasing their competitiveness in the job market.

Utilizing Referrals from Acquaintances and Friends

Leveraging Referrals

One of the most reliable and efficient hiring methods is obtaining recommendations from acquaintances, friends, or existing employees. Candidates introduced through referrals are often pre-screened to some extent, making them more suitable for the role. Additionally, since they have a connection with current employees, they tend to adapt more easily to the company’s work culture and environment.

Benefits of Referrals

Hiring through referrals helps reduce recruitment costs, as there is no need for job advertisements or external recruiters. It also speeds up the hiring process. If the referrer is a trusted individual, that trust can extend to the referred candidate, facilitating a smoother onboarding process.

Considerations for Referral Hiring

While referrals offer many benefits, it is crucial to maintain a structured screening process to ensure candidate suitability. Not all referred candidates will be a perfect fit. Additionally, companies should ensure fairness and transparency in the hiring process to avoid favoritism or bias towards specific employees or groups.

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Candidate Screening Methods

Candidate Screening Methods - Timedoor

Resume Review

Carefully review the candidate’s resume, checking their education, work experience, skills, and qualifications. Key points to evaluate include job stability, whether they graduated in four years, and if they have prior work experience during their studies. Identifying these factors helps in assessing the candidate’s suitability.

Message Responses

Effective communication is crucial in the hiring process. Evaluate whether candidates respond promptly and professionally to messages. Quick and thoughtful responses indicate strong communication skills and enthusiasm, while unresponsive candidates may lack commitment.

Google Forms

Utilizing Google Forms streamlines candidate information collection. Have candidates provide details such as personal information, work experience, skills, and preferences. Those who fail to complete the form may not be motivated enough, allowing recruiters to filter out less engaged candidates. Google Forms also helps centralize data from multiple sources.

Self-Introduction Video

Requesting a self-introduction video enables recruiters to assess a candidate’s personality, communication skills, presentation ability, English proficiency, and enthusiasm. A video submission provides insights beyond what is written in a resume.

Technical Assessment

For technical roles such as IT engineers or designers, conducting relevant skill tests is essential. Assign tasks based on the job requirements and difficulty level to accurately evaluate a candidate’s technical expertise.

Interview

Interviews serve as the final assessment of a candidate’s suitability. By asking structured questions, recruiters can evaluate the candidate’s knowledge, communication skills, logical thinking, and cultural fit within the company.

Employment Contract

Once a candidate is selected, finalize the hiring process with a formal contract. Clearly outline job responsibilities, salary, benefits, working hours, and other employment terms. Ensure the candidate fully understands and agrees before signing.

Key Considerations When Hiring Indonesian Employees

Key Considerations When Hiring Indonesian Employees - Timedoor

Understanding Cultural Diversity

Indonesia is a diverse country with multiple ethnic groups, languages, and religions. Employers should be aware that cultural differences may impact workplace dynamics. A flexible and respectful approach helps build a harmonious work environment.

Religious Diversity Awareness

Indonesia is the world’s largest Muslim-majority country, but other religions such as Hinduism, Christianity, and Buddhism are also practiced. Employers must respect religious backgrounds and accommodate employees’ needs, such as providing prayer rooms and allowing time for religious observances.

Consideration for Religious Holidays and Events

Religious holidays hold significant importance in Indonesia. Many employees expect time off during major religious events, such as Eid al-Fitr for Muslims. During Ramadan, companies should consider adjusting working hours and being mindful of fasting employees.

Legal Requirements

Indonesia has strict labor laws, requiring companies to comply with regulations on working hours, overtime pay, minimum wages, bonuses, and social security (BPJS). Employers must ensure proper employment contracts to avoid legal issues.

Clarifying Workplace Rules and Contracts

Clearly communicate workplace policies, including working hours, leave policies, performance evaluations, and promotion criteria. Transparency in employment terms helps prevent misunderstandings and disputes.

Language Barriers

Language proficiency should be assessed during the hiring process. While some candidates speak English, others may require language training. Forcing employees to use Japanese or another foreign language may not be effective. Providing language support can improve communication and productivity.

Salary Negotiation

Salary negotiation is a crucial part of the hiring process in Indonesia. Offering competitive salaries, incentives, and benefits attracts top talent. Be mindful that Indonesian employees may share salary information with colleagues, so ensure fairness and transparency in pay structures.

Performance Evaluation

Regular performance reviews help track employee progress and provide constructive feedback. A fair and transparent evaluation system ensures employees feel valued and motivated. Performance-based promotions and salary increases contribute to employee retention.

Job Hopping Trend

Frequent job changes are common in Indonesia. To retain employees, companies should offer clear career paths, professional development programs, and a positive work environment. Investing in employee engagement can reduce turnover rates and build long-term relationships.

By understanding these cultural and legal factors, employers can create an inclusive, productive, and legally compliant workplace for Indonesian employees.

Indonesia’s Population Pyramid

Indonesia’s population pyramid is characterized by a structure with a large young population. Out of approximately 270 million people, more than half are under the age of 30. This young demographic composition provides a significant advantage in the labor market. In particular, the IT sector benefits from the younger generation’s strong ability to acquire skills and adapt quickly to new technologies, serving as a driving force for growth. Conducting a detailed analysis of the population pyramid allows for the prediction of future labor supply and demand, enabling the development of appropriate recruitment strategies.

Comparison of Indonesia and Japan’s Population Pyramids

Indonesia’s population pyramid has a broad base due to a high number of births and a large young population, forming a traditional pyramid shape. This results in an abundant labor supply, particularly among younger workers. On the other hand, Japan’s population pyramid reflects an aging society with a low birth rate, creating an inverted pyramid shape with a narrow base and a broader upper section. As a result, Japan faces a serious labor shortage, particularly among young workers.

Indonesia’s Advantages

With a large young population, Indonesia has a high adaptability to new technologies and trends, making it easier for companies to secure a dynamic workforce. Additionally, as the population continues to grow, the consumer market is also expanding, demonstrating strong economic growth potential.

Japan’s Challenges

On the other hand, Japan’s labor force is aging, making it crucial to utilize experienced senior workers while also addressing the challenge of securing a younger workforce. Issues such as rising social security costs and declining labor productivity due to an aging population are also becoming significant concerns.

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The minimum wage by region in Indonesia.

The minimum wage by region in Indonesia - Timedoor

The minimum wage in Indonesia varies by region, with Jakarta’s minimum wage for 2024 set at approximately Rp 5,067,381 (around $340 USD). In smaller cities, the wage is set at a lower level, reflecting the cost of living and economic conditions of each region. This minimum wage is reviewed annually and plays an important role in maintaining workers’ living standards. The decision-making process involves consultations with labor unions and businesses. However, in particular, small and medium-sized enterprises and the informal sector may not always adhere to the minimum wage, and there is a call for stronger labor supervision. Additionally, increasing the minimum wage means higher costs for businesses, making improvements in labor productivity and technological innovation necessary.

In Indonesia, the minimum wage differs by region, based on the living costs and economic conditions of each area. It is also updated annually based on the national economic situation. Below are the minimum wages and their increase rates for each province in 2024:

Here is the list of minimum wages for 2024:

Aceh Province in 2024: Rp 3,460,672, increase of Rp 47,006 (1.38%)
North Sumatra Province in 2024: Rp 2,809,915, increase of Rp 99,122 (3.67%)
West Sumatra Province in 2024: Rp 2,811,499, increase of Rp 68,973 (2.52%)
Riau Province in 2024: Rp 3,294,625, increase of Rp 102,963 (3.2%)
Jambi Province in 2024: Rp 3,037,121, increase of Rp 94,000 (3.2%)
South Sumatra Province in 2024: Rp 3,456,874, increase of Rp 52,629 (1.55%)
Bengkulu Province in 2024: Rp 2,507,079, increase of Rp 88,500 (3.38%)
Lampung Province in 2024: Rp 2,716,496, increase of Rp 83,212 (3.16%)
Bangka Belitung Province in 2024: Rp 3,640,000, increase of Rp 139,904 (4.06%)
Riau Islands Province in 2024: Rp 3,402,492 (3.76%)
DKI Jakarta in 2024: Rp 5,067,381 (3.3%)
West Java Province in 2024: Rp 2,057,495.17, increase of Rp 70,825 (3.57%)
Central Java Province in 2024: Rp 2,036,947 (4.02%)
Special Region of Yogyakarta in 2024: Rp 2,125,897, increase of Rp 144,115 (7.27%)
East Java Province in 2024: Rp 2,165,244.30, increase of Rp 125,000 (6.13%)
Banten Province in 2024: Rp 2,727,812, increase of Rp 66,532 (2.50%)
Bali Province in 2024: Rp 2,713,672, increase of Rp 100,000 (3.68%)
West Nusa Tenggara Province in 2024: Rp 2,444,067, increase of Rp 72,660 (3.06%)
East Nusa Tenggara Province in 2024: Rp 2,186,826, increase of Rp 62,832 (2.96%)
West Kalimantan Province in 2024: Rp 2,702,616 (3.6%)
Central Kalimantan Province in 2024: Official decision pending
South Kalimantan Province in 2024: Rp 3,282,812, increase of Rp 132,835 (4.22%)
East Kalimantan Province in 2024: Rp 3,360,858, increase of Rp 159,459 (6.20%)
North Kalimantan Province in 2024: Rp 3,361,653, increase of Rp 109,951 (3.38%)
North Sulawesi Province in 2024: Rp 3,545,000, increase of Rp 57,920 (1.67%)
Central Sulawesi Province in 2024: Rp 2,736,698, increase of Rp 137,152 (8.73%)
South Sulawesi Province in 2024: Rp 3,434,298 (1.45%)
Southeast Sulawesi Province in 2024: Rp 2,885,964, increase of Rp 126,980 (4.6%)
Gorontalo Province in 2024: Rp 3,025,100, increase of Rp 35,750 (1.19%)
West Sulawesi Province in 2024: Rp 2,914,958, increase of Rp 43,163 (1.50%)
Maluku Province in 2024: Official decision pending
North Maluku Province in 2024: Rp 3,200,000, increase of Rp 221,646.57 (7.5%)
Papua Province in 2024: Rp 4,024,270, increase of Rp 159,574 (4.14%)
West Papua Province in 2024: Rp 3,393,000, increase of Rp 111,000 (3.38%)
Central Papua Province in 2024: Rp 4,024,270, increase of Rp 159,578 (4.13%)
Mountain Papua Province -> Follows Papua Province’s minimum wage
Southwest Papua Province -> Follows Papua Province’s minimum wage
South Papua Province -> Follows Papua Province’s minimum wage

These minimum wages are reviewed annually, so it is important to always check for the latest information. Adhering to the minimum wage helps avoid legal troubles. Additionally, understanding the salary levels of each region allows for offering appropriate wages to attract job seekers’ interest.

The salary of IT engineers in Indonesia.

The salary of IT engineers in Indonesia - Timedoor

The salary of Indonesian engineers varies significantly depending on experience, skills, and location, but compared to common occupations such as factory workers, it is relatively high within Indonesia.

Here are the general salary ranges for Indonesian engineers:

Junior Engineer: IDR 5,000,000 – 10,000,000 per month (approximately $350 – $700 USD)
Mid-Level Engineer: IDR 10,000,000 – 20,000,000 per month (approximately $700 – $1,400 USD)
Senior Engineer: IDR 20,000,000 – 35,000,000 per month (approximately $1,400 – $2,500 USD)

These salaries also vary depending on the engineer’s position and duties. For example, senior engineers or project managers typically have higher salaries than junior engineers. Additionally, engineers with specific technical skills (e.g., data science, cloud computing, security, AI) can command even higher salaries.

Understanding the salary of IT engineers in Indonesia allows companies to offer competitive pay and attract top talent. Regularly reviewing salary levels helps maintain employee motivation and reduce turnover.

Timedoor, which has been hiring IT engineers for 10 years in Indonesia.

Timedoor hiring IT engineers

At Timedoor Indonesia, we have been engaged in various businesses over the past 10 years, such as website development, offshore development, and education services for companies in Indonesia. Throughout this time, we have hired numerous engineers, designers, teachers, and back-office staff.

Our recruitment policy is fundamentally based on believing in and nurturing young talent. While it is inevitable that there are significant cultural and disciplinary differences between Japanese and Indonesian individuals, given the nature of our work with Japanese companies, we cannot approach everything based solely on Indonesian standards.

We hire young, motivated individuals with flexible thinking, even as fresh graduates, and teach them not only technical skills but also the right mindset. We also actively use internships and part-time positions to attract outstanding students, who, upon graduation, become immediate assets as full-time employees.

As each generation of students changes annually, the seniors who already work with us continue to bring in the next generation of talented students through internships and other opportunities.

Having established this system where young and talented employees join us every year, we have no trouble with employee recruitment over the past 10 years.

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Summary

In Indonesia, it is important to utilize a variety of methods for recruiting IT engineers, including LinkedIn, Indeed, JobStreet, social media, school visits, internships, and referral systems. By understanding the characteristics of each method and applying them appropriately, you can secure outstanding talent. Additionally, considering candidate screening methods and recruitment precautions while respecting cultural differences and legal requirements can help ensure a smooth hiring process. By referencing regional minimum wages and comparing IT engineer salaries, you can build an effective recruitment strategy aimed at sustainable growth.

Explanation of Terms Used in the Article

Recruitment Strategy: The plan or method companies use to secure the right talent.
LinkedIn: A social networking site for professionals. It serves as a platform for business networking.
Indeed: A global job search engine. Companies can post job ads, and job seekers can find opportunities through this online platform.
JobStreet: A widely used job portal in Southeast Asia, connecting job seekers with employers.
Internship: A program where students work temporarily at a company to gain practical experience while still pursuing their studies.
Minimum Wage: The legally mandated minimum amount that workers must be paid.
Labor Productivity: A measure of the output or efficiency per worker. It is an important factor in a company’s production activities.
Job Hopping: The practice of frequently changing jobs, particularly seen among younger generations.
Offshore Development: Software development carried out by utilizing resources from another country, often for cost reduction or talent acquisition.
Cultural Differences: Differences in cultural backgrounds or practices that can affect communication in recruitment and workplace environments.
Kampus Merdeka: An internship program promoted by the Indonesian government, allowing students to earn credits while gaining practical experience at a company.

FAQ

Q1: What is the most effective method for recruiting talent in Indonesia?
A1: Utilizing online platforms such as LinkedIn and Indeed is effective. LinkedIn, in particular, is helpful for securing skilled white-collar professionals.

Q2: How is the minimum wage determined in Indonesia?
A2: The minimum wage is determined based on the cost of living and economic conditions in each region and is reviewed annually after discussions with labor unions and businesses.

Q3: What is the typical salary range for engineers in Indonesia?
A3: Junior engineers earn around IDR 5,000,000 – 10,000,000 per month (about 350 – 700 USD), mid-level engineers earn IDR 10,000,000 – 20,000,000 per month (about 700 – 1,400 USD), and senior engineers earn IDR 20,000,000 – 35,000,000 per month (about 1,400 – 2,500 USD).

Q4: What are the benefits of internships?
A4: Internships provide companies with an opportunity to identify and nurture young talent early on. They also allow students to gain practical experience, which helps improve their skills and ensures smoother hiring after graduation.

Q5: What should be considered when recruiting in Indonesia?
A5: It is important to understand and respect cultural and religious differences. Additionally, legal requirements must be followed, and a fair and transparent recruitment process should be maintained.

Q6: How can job hopping be addressed in recruitment?
A6: Clarifying career paths, offering training programs, and creating a comfortable work environment can increase employee engagement and help establish long-term employment relationships.

Q7: What are the advantages of offshore development?
A7: Offshore development allows for cost reduction and flexible development by leveraging a diverse workforce. It also makes it possible to operate 24/7 development using time zone differences.

Q8: What is the Kampus Merdeka program in Indonesia?
A8: The Kampus Merdeka program allows students to earn credits through internships at companies. Employers can use this program to provide practical experience to students and groom them as future candidates for employment.

Q9: What are the benefits of employee referrals in Indonesia?
A9: Referrals from friends or acquaintances are a reliable and efficient recruitment method. Since the referrer has already screened the candidate, it is easier to secure suitable talent.

Q10: What are the regional differences in the minimum wage in Indonesia?
A10: The minimum wage varies by region and is set according to local living costs and economic conditions. For example, Jakarta has a higher minimum wage than other provincial cities.

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